Stock markets in the United States surged Monday morning after the U.S. and China reached a temporary trade agreement to lower tariffs.
When Wall Street opened, the S&P 500 increased 2.65%, and Dow Jones Industrial Average futures surged 2.36%, more than 1,000 points. The tech-heavy Nasdaq 100 also rose 3.66%.
Representatives from the U.S. and China negotiated in Geneva this weekend to arrange for U.S. tariffs on Chinese imports to decrease from 145% to 30% and for China’s tariffs on American imports to decrease from 125% to 10%.
“We concluded that we have a shared interest,” Treasury Secretary Scott Bessent said Monday. “The consensus from both delegations is that neither side wanted a decoupling.”
Industries heavily affected by President Donald Trump’s tariff on China also saw soaring stocks. Apple stock rose more than 5%, and Amazon rose 7.43%.
Investors on Wall Street expressed support for the temporary trade agreement. Dan Ives from Wedbush Securities called the temporary trade agreement a “best-case scenario” for investors.
“We believe new highs for the market and tech stocks are now on the table in 2025,” he said, adding, “This morning is a huge win for the bulls.”
Goldman Sachs analysts wrote that the agreement “implies a brighter outlook for global growth and risk sentiment, and particularly for the U.S. and China.”
At the market opening, major U.S. stock indexes recovered their losses after “Liberation Day,” when Trump unveiled his additional tariffs on dozens of countries.
“It’s almost as if [Liberation Day] never happened,” wrote David Morrison, senior market analyst at Trade Nation. “And investors appear to have forgotten that significant trade damage has already been inflicted.”
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Markets worldwide, particularly Asian-Pacific markets, also surged following the trade announcement. Stocks in Hong Kong led the gains in the region, with the Hang Seng Index surging 2.98% at the end of Monday. Mainland China’s CSI 300 Index also increased 1.16% to end the day.
“Today’s announcements on tariffs on China have been much better than we expected,” analysts at Deutsche Bank wrote.
